General Principles of Thai Private Law

299 Pages·2016·2.283 MB·English

by  Alessandro Stasi (auth.)

Alessandro Stasi
General
Principles of
Thai Private
Law
General Principles of Thai Private Law
Alessandro Stasi
General Principles
of Thai Private Law
1 3
Alessandro Stasi
Mahidol University International College
Nakhon Pathom
Thailand
ISBN 978-981-10-2190-9 ISBN 978-981-10-2191-6 (eBook)
DOI 10.1007/978-981-10-2191-6
Library of Congress Control Number: 2016947211
© Springer Science+Business Media Singapore 2016
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Preface
The primary purpose of this book is to illustrate and explain the elementary
principles of Thai private law, in a simple and readable style that should appeal to
a wide readership of students, academics, and practitioners. The text is organized
around the major issues relating to private law and provides a concise and system-
atic overview of the norms regulating legal relationships between private persons.
Although all topics have been previously treated in the Thai language, this book
is one of the first and most complete works in the English language about Thai
private law. The book covers not only the legal system, starting from the Civil and
Commercial Code and emphasizing the substantial changes that have been intro-
duced in the past decades, but also the deep influence of doctrine and case law. It
is built up in several layers, starting from the general rule, to gradually examine
the more specific ones. As it is common in civil law legal systems, the analysis of
the specific cases follows the explanation of the general rule.
The 6 chapters are each designed to present a detailed analysis of a particular
area of Thai private law and discuss the principal issues encountered in a legal
practice without unnecessary detail. To some extent, each chapter is intended to
address a specific topic which can be read independently of the rest of the book.
Chapter 1 introduces the main concepts, rules, and institutions of the Thai legal
system. It details the history of the codification of the Civil and Commercial Code
and provides the reader with valuable information about the main principles which
regulate private relations between citizens and business associations. Chapter 2
provides a full and systematic view of the fundamental principles which regulate
the law of obligations in Thailand. It analyses the general rules relating to obliga-
tions (dealing with contractual agreements separately in so far as this is necessary)
as well as the special rules which apply to particular kinds of obligations. It is
also concerned with the mechanisms of prevention, compensation, and enforce-
ment in case rights are violated. Chapter 3 is devoted to specific contracts. It pro-
vides an understanding of the sources of contract law in Thailand and analyses
the normative regulation of nominate contracts under the Civil and Commercial
Code. Topics covered include sale, gift, hire of property, hire of services, and hire
of work, loan, deposit, suretyship, pledge, and mortgage. Chapter 4 deals mainly
v
vi Preface
with real rights, though it also incidentally contains rules referring to obligatory
relations arising in connexion with the ownership and possession of things. It pro-
vides an introduction to the fundamental rules which regulate property law in the
Thai legal system and includes a detailed discussion of the concepts of ownership
and possession. It also reviews some of the principal characteristics of the main
real rights over immovables other than ownership including the right of servitude,
superficies, habitation, and usufruct. The most important legal aspects of family
law are summarized in Chap. 5. After outlining the Thai rules as to the celebra-
tion of marriages and its validity, the effects of marriage are explained in detail.
The effects of marriage are treated under two heads: the general effects being dis-
tinguished from the effects described under matrimonial regime of the spouses.
This chapter also analyses the legal relationships of individuals who are connected
to each other as family members, such as children, parents, wives, and husbands.
Chapter 6 concluding the book deals with all issues arising from death and trans-
mission of the estate of a person after his death, the statutory rights of inherit-
ance, the succession by will, and the administration and devolution of an estate of
deceased persons.
Much of the material presented in this book has been inspired and greatly
informed by the studies of Prof. Ernest Joseph Schuster. His fundamental work
‘The principles of German civil law’ has exercised an immense influence on the
drafters of the Thai Civil and Commercial Code and still represent today an essen-
tial reference for a large number of researchers and scholars dealing with the
Thai legal system. This work has also benefited greatly from the continual assis-
tance of a very large number of friends, colleagues and students. These include,
in particular, Alexei Blanc, Parisa Mahakantha, Pariya Patchimnan, Phatcharaporn
Chokbunsuwan, Somkit Keskowit, and Suppaluk Jakkrod. The author is espe-
cially grateful to Prof. Giuseppe Mario Saccone, Dr. Santichai Srisawet, and
Dr. Sumalee Yang who meticulously reviewed the entire manuscript and made
many pertinent suggestions. Additional thanks go to Phansa Manokatitham for her
valuable assistance with particular topics in the text and Thitiwat Ongsangkoon for
his work on the project.
All of these persons and institutions must be exonerated, however, from respon-
sibility for any inaccuracies, errors, or omissions within the work, the author alone
assuming full responsibility. To the best of the author’s knowledge, the law as
stated in this work is current as of May 31, 2016.
Nakhon Pathom, Thailand Alessandro Stasi
Contents
1 General Rules of Thai Private Law ............................. 1
1.1 Introduction ............................................ 1
1.1.1 Private Law, Civil Law, and Commercial Law .......... 1
1.1.2 History and Function of Thai Private Law .............. 2
1.1.3 Arrangement of the Civil and Commercial Code ........ 5
1.1.4 General Characteristics of the Civil
and Commercial Code ............................. 6
1.1.5 Methods of Interpretation .......................... 8
1.2 Persons ............................................... 11
1.2.1 General Rules .................................... 11
1.2.2 Legal Position of Natural Persons .................... 11
1.2.3 Composition of Personality ......................... 15
1.2.4 Legal Capacity ................................... 17
1.2.5 Characteristics of Juristic Persons .................... 21
1.2.6 Particular Classes of Juristic Persons .................. 22
1.2.7 Juristic Persons’ Capacity to Act ..................... 22
1.3 Things ................................................ 24
1.3.1 Definition ....................................... 24
1.3.2 Classification of Things ............................ 26
1.3.3 Things, Components Parts, and Accessories ............ 28
1.3.4 Natural and Legal Fruits ........................... 30
1.3.5 Money and Negotiable Instruments ................... 31
1.4 Rights ................................................ 32
1.4.1 Classification .................................... 32
1.4.2 Right to Name ................................... 33
1.4.3 Right to Trade Symbols ............................ 34
1.4.4 Rights Relating to Intangible Objects ................. 36
1.4.5 Adjective Rights .................................. 38
1.5 Juristic Acts ............................................ 40
1.5.1 The Concepts of Legal Facts and Legal Acts ............ 40
1.5.2 Capacity of Juristic Acts ........................... 41
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viii Contents
1.5.3 Declaration of Intention ............................ 42
1.5.4 Discrepancy Between Real and Apparent Intention ...... 43
1.5.5 Vices of Consent ................................. 45
1.5.6 Object of Juristic Acts ............................. 49
1.5.7 Form Juristic Acts ................................ 51
1.5.8 Incidental Elements of Juristic Acts ................... 53
1.5.9 Ineffective Juristic Acts and Their Consequences ........ 55
1.6 Agency ............................................... 57
1.6.1 Definition of the Term ............................. 57
1.6.2 Modes of Establishing Agency ...................... 58
1.6.3 Effect of Absence of Authority ...................... 59
1.6.4 Operation of Powers of Agency ...................... 61
1.6.5 Termination of Agency ............................. 62
1.6.6 Assent of Third Parties ............................. 63
1.7 Prescription ............................................ 64
1.7.1 The Historical Development of Prescription ............ 64
1.7.2 Effects of Prescription ............................. 65
1.7.3 Rules as to Period of Prescription .................... 66
1.7.4 Interruption and Suspension of Prescription ............ 67
References .................................................. 68
2 The Law of Obligations ...................................... 71
2.1 The General Statement of Obligations ....................... 71
2.1.1 The Concept and Meaning of Obligations .............. 71
2.1.2 Classification of Obligations ........................ 72
2.1.3 Formation of Obligations ........................... 74
2.1.4 Obligations Created Otherwise Than by Juristic Act ...... 76
2.2 Circumstances Affecting Liability .......................... 77
2.2.1 Absolute Liability and Liability for Default ............ 77
2.2.2 Contributory Default of Plaintiff ..................... 78
2.2.3 Liability for the Default of Others .................... 79
2.2.4 Types of Delay (Mora) ............................. 83
2.2.5 Joint Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
2.2.6 Joint Rights ..................................... 87
2.3 Performance of Obligations ............................... 87
2.3.1 Mode of Performance ............................. 87
2.3.2 Acceptance of Performance ......................... 91
2.3.3 Impossibility of Performance ........................ 93
2.3.4 Performance of Reciprocal Agreements ............... 94
2.4 Termination of Obligations ................................ 98
2.4.1 Performance in Lieu of Promised Performance .......... 98
2.4.2 Release ......................................... 98
2.4.3 Deposit ......................................... 99
2.4.4 Set-off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
2.4.5 Merger ......................................... 103
Contents ix
2.4.6 Novation ........................................ 103
2.4.7 Rescission ...................................... 107
2.5 Remedial Obligatory Rights ............................... 108
2.5.1 Right to Performance of Restitution in Kind ............ 108
2.5.2 Right to Pecuniary Damages ........................ 109
2.5.3 Right of Subrogation .............................. 111
2.5.4 Penalties ........................................ 112
2.5.5 Earnest Money ................................... 113
2.5.6 Right of Retention ................................ 114
2.6 Obligations Arising from Unlawful Acts ..................... 115
2.6.1 Introductory Statement ............................. 115
2.6.2 General Rules as to Unlawful Acts ................... 116
2.6.3 Capacity to Commit Unlawful Acts ................... 117
2.6.4 Parties Entitled to Claim Compensation ............... 118
2.6.5 Defamation ...................................... 119
2.6.6 Rules as to Specific Classes of Unlawful Acts ........... 121
2.6.7 Apportionment of Liability Between Several Persons ..... 122
2.6.8 Prescription ..................................... 123
2.7 Obligations Imposed by Surrounding Circumstances ............ 123
2.7.1 Introductory Considerations ......................... 123
2.7.2 Management of Affairs Without Mandate .............. 124
2.7.3 Unjustified Benefits ............................... 126
2.7.4 Obligations Created by Estoppel ..................... 128
2.7.5 Obligations and Rights of Finders of Lost Objects ....... 129
References .................................................. 130
3 Specific Contracts ........................................... 131
3.1 Sale .................................................. 131
3.1.1 The General Concept of the Contract of Sale ........... 131
3.1.2 The Rights and Duties of Parties to a Contract of Sale .... 132
3.1.3 The Liabilities of the Seller ......................... 134
3.1.4 Buyer’s Remedies in the Case of Breach
of Seller’s Duties ................................. 136
3.1.5 Seller’s Remedies in Case of Breach of Buyer’s Duties .... 138
3.1.6 Some Particular Kinds of Sales ...................... 138
3.2 Gift .................................................. 140
3.2.1 Definition ....................................... 140
3.2.2 Promise of Future Gifts ............................ 141
3.2.3 Gifts Subject to Burdens ........................... 142
3.2.4 Revocation of Gifts ............................... 143
3.3 Hire of Property ........................................ 143
3.3.1 General Remarks ................................. 143
3.3.2 Duration ........................................ 144
3.3.3 Form ........................................... 145
3.3.4 The Rights and Duties of the Parties .................. 145
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3.3.5 Effects of Breach of Contract ........................ 148
3.3.6 Effects of Sales of Immovables on Lessee’s Rights
and Duties ...................................... 150
3.4 Hire of Services ......................................... 151
3.4.1 The Nature of the Contract ......................... 151
3.4.2 Employer’s Duties ................................ 153
3.4.3 Employee’s Duties ................................ 154
3.4.4 Termination ..................................... 155
3.5 Hire of Work ........................................... 157
3.5.1 General Concept of the Hire of Work Contracts ......... 157
3.5.2 Rules as to Hire of Work Contracts Where
Contractor Supplies Material ........................ 158
3.5.3 Rules as to Other Hire of Work Contracts .............. 159
3.5.4 Termination ..................................... 162
3.6 Loan ................................................. 162
3.6.1 General Statement ................................ 162
3.6.2 Gratuitous Loan for Use ............................ 163
3.6.3 Loan for Consumption ............................. 164
3.6.4 Loan of Money ................................... 165
3.7 Deposit ............................................... 166
3.7.1 General Remarks ................................. 166
3.7.2 Deposit in the Nature of a Loan ...................... 167
3.7.3 Special Rules for the Deposit of Money ............... 168
3.7.4 Special Rules for Innkeepers ........................ 168
3.8 Suretyship ............................................. 169
3.8.1 General Statement ................................ 169
3.8.2 Extent of Surety’s Liability ......................... 170
3.8.3 Defences Open to Surety ........................... 170
3.8.4 Remedies of Surety Against Principal Debtor ........... 171
3.8.5 Remedies of Surety Against Cosureties ................ 172
3.8.6 Termination of Surety ............................. 172
3.9 Pledge ................................................ 173
3.9.1 General Characteristics ............................ 173
3.9.2 Rights and Duties of the Parties ...................... 176
3.9.3 Pledgee’s Remedies ............................... 178
3.9.4 Extinction of Right of Pledge ....................... 179
3.10 Mortgage .............................................. 180
3.10.1 Property Subject to Right of Mortgage ................ 180
3.10.2 Creation of Rights of Mortgage ...................... 181
3.10.3 Enforcement of the Mortgage ....................... 181
References .................................................. 182
4 Property Law ............................................... 183
4.1 The Right of Ownership .................................. 183
4.1.1 Introductory Concepts ............................. 183